Turzai’s Allegheny County Pension Preservation Bill Becomes Law
12/23/2013
HARRISBURG – Helping taxpayers, employees and pensioners by keeping the Allegheny County Pension Fund actuarially sound is the goal of a new law signed by the governor today, House Majority Leader Rep. Mike Turzai (R-Allegheny County) announced.

The governor signed Turzai’s Allegheny County pension reform bill, House Bill 546, today in his Capitol office.

“We do not want any more Detroits,” Turzai said. “Taxpayers can’t afford generous public pension plans anymore, so we worked with the Allegheny County Retirement Board and local officials to enact some important changes to the benefit package of future county workers.”

The changes to the Allegheny County pension program will only apply to future employees only who are hired or re-employed on or after the effective date of this act. The new law includes:

• Reducing the amount of overtime to only 10 percent above the base salary in the calculation of pension benefits.
• Setting the calculation for retirement as the average monthly compensation received by the county employee during the highest 48 months of the last eight years of employment on a bi-weekly basis.
• Allowing the Allegheny County Retirement Board (ACRB), as necessary, to take actions so they can be compliant with the IRS rules and regulations.
• Increasing vesting from eight years to 10 years.
• Reducing the benefit multiplier from 2.5 percent to 2 percent.

While the pension is 77.8 percent funded, these changes were necessary to stabilize the pension system, allowing retirees to continue to receive benefits and ensure pension benefits will be available to future employees, Turzai said.

Allegheny County's pension fund currently holds $812 million and is supported by about 7,400 active employees, who pay 8 percent of their salary into the account. About 4,100 retirees depend on the fund for income.

Representative Mike Turzai
Majority Leader
28th District
Pennsylvania House of Representatives

Media Contact: Stephen Miskin
717.772.9943 (office), 717.756.3936 (cell)
smiskin@pahousegop.com  
RepTurzai.com / facebook.com/RepTurzai
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